UPDATE: Citi Lowering Price Target On WellPoint

Citi Investment Research is out with a research report on WellPoint WLP and is lowering its price target to $80 from $96, and it has a Buy rating on shares. In a note to clients, Citi Investment Research writes, "While Medicare got all the attention, the numbers suggest WellPoint's commercial MLR also deteriorated more than expected — The consolidated loss ratio deteriorated 360 basis points sequentially, to 85.7%. Medicare was clearly a big driver, but the book isn't that big, so even if the Medicare MLR deteriorated 600 basis points sequentially, it still appears the commercial loss ratio had to rise several hundred basis points sequentially. Looked at differently, the operating gain in the commercial business fell about $375 million sequentially, a drop of 33%. Even if the Medicare business was fine, WellPoint's earnings would have still been largely in-line (adjusting for a $0.13 tax benefit), relative to the major earnings upside we've seen from the other big plans this quarter." Shares of WLP lost $4.86 yesterday to close at $68.70.